For many organizations the question about utilizing social media is not “if,” but 
“when” – and “how.” How do we know it’s right for us? How do we choose which vehicles? What do we say? How do we manage and measure it… and finally, how do we get started?
Frankly, those questions must precede the budgeting process. But, if you’ve already worked through those issues, and are comfortable delving into this fast-growing area, you won’t be sorry. But, you have to plan ahead and be smart about it.
So, how do you accurately budget for this new endeavor? It’s tricky. While there are costs associated with the adoption of new technologies and tactics, the best way to minimize cost is to spread responsibility among existing staff, designate centers of expertise, and adopt popular, off-the-shelf tools.
If hiring a specialist on staff will help your organization embrace these new tools of customer conversation, then go for it. However, have a transition plan for that position when social media evolves into one of the many ways in which you communicate regularly with your customers.
Another piece to consider is technology. Does your website need an overhaul to make this work? Will you need additional programming — audio, video, more? And, of course, you need to set aside marketing dollars to promote this new venture. For now, and until social media is just another communication piece in an integrated marketing campaign, to ensure success you must dedicate time and effort to building and maintaining your fan base.
After cost-estimating your staffing, education, technology and marketing issues, creating a budget line item is a wise move. How exactly you do that will be different for every organization. At MFM, we believe social media can be used to effectively supplement the areas of education, public relations, product development, community giving, and overall campaign support, and, because of that, can be divided among those areas. Or, if you’re just getting started, adding a social media line item might work best.
And, although there is no standard budget number that can be applied industrywide, we can safely say that if you allocate 8-10% of your total marketing budget, you would be aligning with the national norms. Or, take our poll to see what others in your asset size are doing.
Whatever direction you decide to go in 2010, exploring the power of social media to connect with your customers on a whole new level will be a strategically valuable move. You’ll not only be stepping up your communications efforts by adding another effective and low-cost dimension, but you’ll be positioning yourself for effective communication with future generations. And, if you need help building a social media budget, or developing and executing a strategy, MFM can help. We can provide you best practice case studies, and research-based recommendations.
As Greg Icenhower, Vice President of Proctor and Gamble Corporate Communications so aptly said, “We were the biggest shouter in the 20th Century. In the 21st Century, we want to be the best listener.”
